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Stocks edge down after bumpy ride

GP, BATBC, Brac Bank, Islami Bank suffer most

FE Report | September 26, 2019 00:00:00

Stocks ended marginally lower on Wednesday, extending the losing streak for the second straight session, as risk-averse investors continued their selling binge on large-cap shares.

The market opened on negative note and the key index shed over 50 points in the first half of trading, but recovered most of the losses during the last half to end with nearly 7.0 points lower.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 6.98 points or 0.14 per cent to settle at 4951.

Market analysts said many investors continued to fret about the recent volatility of the market and followed 'wait-and-see' approach, taking the market in the red zone again.

Risk-averse investors continued their selling binge on large-cap stocks like Grameenphone, BATBC, Brac Bank, National Life Insurance and Islami Bank contributed 15 points index fall jointly, said an analyst.

He noted that the institutional investors also followed cautious stance and are waiting for the central bank's latest move about liquidity support to the banks for boosting their investment in the country's capital market.

The DS30 index, comprising blue chips, also fell 7.40 points to finish at 1,766. However, the DSE Shariah Index saw a fractional gain of 0.40 point to close at 1,145.

Turnover, a crucial indicator of the market, also fell to Tk 3.18 billion, which was nearly 21 per cent lower than the previous day's Tk 4.05 billion.

International Leasing Securities said, the depressed market outlook kept the investors worried, resulting low market participation.

Telecommunication witnessed the highest loss of 0.85 per cent, followed by food 0.81 per cent, banking 0.56 per cent and financial institutions 0.53 per cent.

The port city's bourse, the Chittagong Stock Exchange, also ended marginally lower with its All Shares Price Index (CAPSI) -- CASPI-losing 61 points to close at 15,018 and the Selective Categories Index - CSCX -shedding 36 points to finish at 9,122.

The losers beat the gainers as 120 issues closed lower, 84 ended higher and 33 remained unchanged on the CSE.

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